The signatories to the appeal, including the Agricultural Union of Ukraine, the Association of Farmers and Private Landowners of Ukraine, the Ukrainian Union of Poultry Farmers, dairymen's association Ukrmolprom and UkrSugar noted that in 2011 the situation in the country's agriculture deteriorated.
On July 1, 2011, VAT refunds to exporters of grain and industrial crops were terminated. On the same date, export taxes were imposed on wheat, barley and corn, ranging from 9% to 14%.
"Allowing the use of such measures as temporary, we are extremely concerned about the recent reports that the extremely high fiscal pressure on the export of farm produce may continue in 2012. The point at issue is maintenance of export taxes on grains and their extension to other products, in particular oilseeds and sunflower oil," the appeal reads.
The consequences of such a policy, in the opinion of the applicants, would be negative. This is, in particular, the loss of export markets due to a decrease of competitiveness compared to countries in which exports are not taxed (for example, Russia occupied Ukraine's export markets in July-August 2011 by exporting almost 4 times more grain than Ukraine), loss of foreign exchange earnings and deteriorating trade balance, which could destabilize the situation in the foreign exchange market of Ukraine.
As reported, the Ministry of Agrarian Policy and Food stands for removal of export duty on crops, Minister Mykola Prysiazhniuk said. According to him, the fact that today Ukraine has the ability to export 24-25 million tons of grain is very positive, but it is necessary to remember that by limiting exports, "we may slow down the production of grain and reduce investment."
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